On 12 May 2026, the Australian Government released its long-awaited formal response to the House of Representatives Standing Committee (Committee) inquiry into online gambling harm with significant implications for stakeholders, including wagering and lottery operators, consumers, banks, media organisations, technology providers, regulators and sporting bodies.

The Government's response addresses some of the Committee's 31 recommendations, with the Government calling on the states and territories to examine and respond to the others.

Of those addressed in the announcement, particularly in relation to reforms to online wagering, the Government has indicated its intention to introduce a package of legislative reforms to the Interactive Gambling Act 2001 (IGA) commencing 1 January 2027, leaving a relatively short period for engagement and preparation. The IGA provides significant enforcement tools to the responsible regulator, the Australian Communication and Media Authority (the ACMA).

Author: Ben Daley, Senior Associate / Daniel Lovecek, Principal

1. Wagering Advertising

The advertising reforms are the most anticipated of the changes and, in many respects, build upon existing restrictions. Nonetheless, some aspects will be operationally disruptive and advanced planning will be imperative to ensure compliance and to adapt operations to the new requirements.

From 1 January 2027, the following restrictions will apply:

A complete prohibition on wagering advertising during live sport on broadcast television between 6:00am and 8:30pm
A ban on wagering advertising in sports venues and on player and official uniforms
A cap of three wagering advertisements per hour per broadcast channel outside the live sport blackout window
Radio advertising restrictions during school drop-off and pick-up hours (8:00–9:00am and 3:00–4:00pm)
Online platform advertising permitted only where users are verified as 18 or over, logged in, and have not opted out — the so-called "triple lock" mechanism
A prohibition on the use of celebrities, athletes, and odds promotion across all wagering advertising

Importantly, the Government has confirmed that dedicated racing channels, race broadcasts, and racetracks will be exempt from the proposed reforms. This deliberate carve-out recognises the intrinsic commercial relationship between racing and wagering. The announcement also advises that dedicated betting websites and venues (e.g. TAB outlets) will also be exempt.

The practical consequences extend well beyond marketing departments. Sponsorship agreements, broadcast rights arrangements, influencer and ambassador contracts, and affiliate relationships will all require careful legal review against the new framework before it takes effect.

2. Emerging Products

Beyond advertising, the Government has turned its attention to products it considers to be operating in regulatory grey zones, either exploiting gaps in the IGA's current architecture or evolving in ways that outpace existing consumer protection mechanisms.

a) Online keno faces an outright ban, including for existing operators. The Government has drawn a direct analogy with the existing prohibition on online casino games, pointing to rapid-play mechanics and spending thresholds that, in some configurations, allow consumers to wager up to $1,000 every three minutes. The ban will require legislative amendment and state and territory consultation, but the policy intent is unambiguous, including as to its application to current operators.

b) Foreign-matched lotteries which allow Australian consumers to participate in international draws for which they would otherwise be ineligible, remain an "excluded lottery service" under the current IGA, placing them outside existing consumer protection obligations that apply to wagering services (although obligations exist at a Territory level). The Government has committed to closing this gap through targeted legislative amendment following consultation with states, territories and industry.

c) Trade promotion lotteries present a more nuanced compliance challenge. The Government has identified an emerging category of subscription-based rewards programs structured around frequent, lottery-style prize draws — products it characterises as "shadow lottery" arrangements operating in a regulatory area absent of Commonwealth-level regulation. The commitment to introduce explicit product definitions and national consumer protection requirements for this category will have significant implications for operators who have thus far operated outside the IGA's reach and within state and territory regimes that were not necessarily adapted to these forms of offering.

3. BetStop, Enforcement, and Sporting Integrity

BetStop's trajectory is upward. With over 60,000 registrations since its August 2023 launch, the Government will fund a national advertising campaign, increase the ACMA's ongoing promotional mandate, and progress IGA amendments and system updates to improve system functionality and compliance. Cost recovery arrangements will be amended to ensure the gambling industry, rather than consolidated revenue, bears the cost of these enhancements.

On illegal offshore gambling, the Government's proposed approach is multi-layered: banking sector cooperation to disrupt financial flows to unlicensed operators, streamlined and automated ACMA website-blocking powers, and an expanded prohibition on advertising illegal services that will now extend to social media platforms and hosting services. With the illegal offshore market projected to reach $5 billion by 2029, the integrity and competitive position of licensed operators is directly at stake.

The proposed codification of match-fixing as a Commonwealth criminal offence under the Criminal Code, fulfilling Australia's obligations under the Council of Europe's Macolin Convention, rounds out a package that is as much about protecting the structural integrity of Australian sport as it is about consumer protection.

What This Means for Your Business

The cumulative effect of these reforms is a compliance environment of increased complexity than what exists today. The IGA amendments, advertising restrictions, product prohibitions, BetStop enhancements, and enforcement measures do not operate in isolation; they interact, and their combined impact on business models, contractual arrangements, product offerings, and compliance obligations demands a coordinated and well-informed response. It will also be important to monitor and respond to the development and introduction of reforms delegated to state and territory governments for implementation.

Critically, the legislative drafting process is underway, and the Government has flagged stakeholder consultation ahead of implementation. For affected businesses, that consultation window is not merely a formality, it is an opportunity to shape the detail of reforms whose broad direction has already been determined.

Businesses that engage early with the drafting process, the consultation windows, and their own compliance frameworks will be better positioned than those that do not. Senet is well placed to assist operators, suppliers, racing bodies, sports organisations, and media businesses across all aspects of the reform package, and will continue to keep clients informed as the legislation develops.

About Senet

Senet is a multidisciplinary Australian firm specialising in gambling and gaming law, regulatory compliance, and business advisory services. We are the largest specialist team in Australia and based in Victoria. Recognised globally as experts in our field, we understand Australia’s complex gaming legal and regulatory landscape, enabling us to guide clients through their compliance requirements across each state and territory. Our clients range from start-ups to publicly listed global operators, both nationally and internationally. Our team is deeply immersed in the industry, often sharing insights at public speaking events, and our principals have held executive roles in a global ASX-listed entity and a 'Big Four' advisory firm, giving us a unique perspective on the challenges our clients face.

If you have any questions or would like to discuss the topics covered in this article, please contact the team at Senet.

Get in touch